When summing up 2017, interest in online video is again reaching new record levels across the Nordics. More time is spent watching video online than ever before and household spend on digital video is accelerating. But, it is now becoming clearer and clearer that the ones mainly capitalizing on this development are global companies such as Netflix, Youtube and HBO. With the recently announced Fox/Disney deal, the global threat will likely intensify going forward.

Now, at the end of 2017, approximately 7.7 million Nordic 15-74 year olds watch online video an average day. Compared to 2016, this is an increase of almost 15%. On the other hand, traditional TV viewing is decreasing approximately 7% in the same period. Most of the growth of online viewing profits global actors, as locals continue to fall behind.

Across the Nordics, Netflix and Youtube attain more than 50% of all online viewing. Global services also lead in terms of subscription video on demand (SVOD). Netflix, HBO Nordic and Amazon together account for more than four million subscribing households. Local Nordic media actors, on the other hand, only attain half of that amount. The gap between the globals and the locals has actually been increasing yearly since 2013. As we move forward in 2018, Mediavision sees no clear signs that this would come to a change.

Netflix’ content budget for 2017 of almost 6 bn EUR, was approximately twice the size of all Nordic broadcast companies combined. The advantages of economies of scale make the globals’ position hard to challenge. This situation is likely to remain during the coming years.

– 2017 has been an eventful year in the media industry, and the Nordics is not an exception. The shift in consumption from traditional to digital media has continued, with investments and revenues following. Towards 2018, the consumer development will likely be accompanied by an even more fierce competition, leading to both vertical and horizontal consolidations – locally and globally. The AT&T/Time Warner and Fox/Disney deals, together with Facebook Watch’s potential global release are some factors that will have great impact on the video market as a whole – and almost certainly throughout the Nordics, says Marie Nilsson, CEO at Mediavision.

Pressrelease Nordic Q3 december 2017.pdf